This document discusses a multi-bank solution called U.S. Bank SinglePoint that can help companies manage their global operations and banking needs more efficiently. It offers services like access to multiple foreign bank accounts through a single platform, liquidity management across accounts, foreign exchange risk management tools, and international payments and information reporting capabilities. The solution aims to help companies address the challenges of operating globally with limited resources by providing an easier way to maintain foreign bank accounts and oversee international banking activities in one place.

1. U.S. Bank Global
Transaction Services
Presented to SBDC of Illinois
Eric Trejo
Vice President
International Division
U.S. Bank SinglePoint is a registered
trademark of U.S. Bancorp.

2. The International Challenge
 Operations are global
 Banks are numerous and widespread
 Resources are limited
 Do more with less…
• Maintain foreign bank accounts
• Actively manage group liquidity
• Keep costs low
• Manage risk
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3. Options
 Do nothing
• Continue to spend time, effort and cost maintaining each account directly using
each foreign bank’s proprietary electronic banking platform
 Move to a “Global Universal Bank”
• No such thing as a truly “Global Bank” – meaning a bank that has a service set full
enough to meet all customer demands in all countries
• More likely, these so called “Global Banks” have a full service set in a few countries,
and a more superficial capability in several others
 Leverage a focused multi-bank solution…
U.S. Bank SinglePoint is a registered
trademark of U.S. Bancorp.
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4. The Multi-Bank Solution
 Does your bank offer SWIFT to facilitate the exchange of
information and instructions with your overseas banks?
 Does your bank manage the connection to your existing
banks, and able to offer referrals for new international
banking relationships?
 Does your bank provide a gateway for international
information reporting and a method to execute payments
remotely on your overseas accounts?
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5. Liquidity Management
 Manage your company’s international liquidity
using a Multi-bank Platform for International
Information Reporting and International
Request for Transfer
• Access timely and detailed balance information
providing a “real time” view of your USD and foreign
bank balances
• Optimize cash balances by maximizing investments and
minimizing debt
• Actively control the flow of funds between your global
accounts from one access point
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6. Sample Account Structure
Foreign Bank 1.
GBP Account
MT940
MT101
MT101
Payments MT101 MT101
SWIFT Foreign Bank 2
Information Reporting U.S. Bank MT940 MT940
Your CAD Account
Organization SinglePoint MT101
MT101
MT940
Swift Message Type:
Foreign Bank 3
MT101: International Request for Transfer
MT940: Previous Day Statement Reporting EUR Account
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7. Foreign Exchange
Risk Management

8. Foreign Exchange Marketplace
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9. Foreign Exchange Products Defined
 Spot
 Purchase / sale of one currency against another;
 For value (delivery) two business days from trade date (1 day for USD/CAD)
 Forward Outright
 Purchase / sale of one currency against another at set rate for future settlement
 Rate comprised of market spot rate as well as forward points
 FX Swap
 Agreeing upon two separate FX contracts for two separate value dates
 Typically involves spot value date against a future settlement date
 Non-Deliverable Forward
 Synthetic forward contract settled against a deliverable currency; used for currencies
that are not freely traded
 Option
 The right but not the obligation to purchase or sell one currency against another for
particular tenor, notional, and price
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10. Risk Management Process
 Step 1: Define FX Risk Management Philosophy and Objectives
 Step 2: Identify and Quantify FX Exposures
• Include all relevant parties such as treasury, sales, tax, and accounting. What are our specific
risks?
 Step 3: Develop Risk Management Policy and Strategy
• Simply eliminate FX risk or are opportunities to maximize revenues present?
• What hedging instruments will be used? Who is authorized to deal? At what limits?
• Who will confirm and settle deals? Who will sign confirmations?
 Step 4: Execute Strategy
 Step 5: Monitor and Measure Strategy Performance
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11. Needs Spectrum - International Services
Degree of Globalization:
Foreign sales
Wholly Limited foreign Significant Foreign Extensive
office(s) / retail
domestic sales / foreign sales / management foreign
outlet /
suppliers suppliers offices operations
Procurement
Trading with… Operating in…
Global Banking Services Required:
Letters of Credit Automated trade In-country accounts Global liquidity Full array of
N/A
Foreign Exchange services Coin / currency management global services
International Wires FX hedging Local branch access Pooling / netting
Local payments /
collections
Global position mgmt
Slide Concept courtesy Treasury Strategies
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12. Q&A
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